Use Remote Desktop with custom DPI

I eventually found a solution to this via this blog post by Falafel Softare.

Basically:

• Download Microsoft's souped-up RDP client called Remote Desktop Connection Manager 2.2 (edit: no longer available so try your luck with Remote Desktop Connection Manager - see notes below)
• When you add a new server, go to the 'Remote Desktop Settings' tab of the Properties and select 'Same as client area'
• Remote Desktop Connection Manager will then display the remote machine using the client machines DPI settings.

I've written this up in a bit more detail with screenshots on my blog.

edit: Sounds like this might only work with Windows 8 clients, getting reports doesn't work the same way with Windows 7 clients.

edit: Microsoft is no longer offering V2.2, only V2.7. Sounds like it will still work if you tweak the settings: Browse to the location of RDCMan.exe. (C:\Program Files (x86)\Microsoft\Remote Desktop Connection Manager by default). Right click RDCMan.exe select properties, select the Compatibility tab and uncheck "Disable display scaling on high DPI settings"

Microsoft has released a hotfix enabling the DPI setting for RDP sessions.
Hotfix info: http://support.microsoft.com/kb/2726399.
Hotfix downloads:

32-bit: http://hotfixv4.microsoft.com/Windows%207/Windows%20Server2008%20R2%20SP1/sp2/Fix396134/7600/free/451040_intl_i386_zip.exe

64-bit: https://hotfixv4.trafficmanager.net/Windows%207/Windows%20Server2008%20R2%20SP1/sp2/Fix396134/7600/free/451041_intl_x64_zip.exe

Also note that you have to manually either choose to open this file as administrator, or choose a different unzip location. Then run the smaller file that comes out, which will automatically elevate as it should.

I know this is an old question, but I have found and elegant and easy solution to this issue.

Change Text Size is a small application written by Michel Stevelmans which will allow a user to change their DPI settings. I have tested it on Windows 7 and it has worked wonderfully.

Here is a link to the KBB article in regards to this issue: KB2544872